Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Value Stream Mapping Process


Published on

Value Stream Mapping Process - Why, Who, What, When, Where, How etc etc

  • Login to see the comments

Value Stream Mapping Process

  1. 1. Value Stream Mapping Process What, Where, When, Why, Who, Which, How etc Anand Subramaniam
  2. 2. Be aware.. <ul><li>Lean system implementation requires a high degree of discipline, and sometimes it can stress the workforce. </li></ul><ul><li>There is high level of co-operation & trust required between operators and supervisors. </li></ul><ul><li>Reward systems and labor classifications must often be revamped when a lean system is implemented. </li></ul><ul><li>Existing layouts may need to be changed. </li></ul><ul><li>Daily production schedules in high-volume, make-to-stock environments must be stable for extended periods. </li></ul><ul><li>If the inventory advantages of a lean system are to be realized, small lot sizes must be used. </li></ul><ul><li>If frequent, small shipments of purchased items cannot be arranged with suppliers, large inventory savings for these items cannot be realised. </li></ul>
  3. 3. Highlights <ul><li>Overview - Value Stream Mapping (VSM) </li></ul><ul><li>Pre-VSM </li></ul><ul><li>VSM Review – Current State </li></ul><ul><li>VSM Review – Future State & Implementation Road Map </li></ul><ul><li>Excellence Road Map </li></ul>
  4. 4. Highlights - 1 <ul><li>Lean Process </li></ul><ul><li>Value Stream Mapping (VSM) </li></ul><ul><li>Value & Non Value Add </li></ul><ul><li>Principles </li></ul><ul><li>SIPOC </li></ul><ul><li>Definition </li></ul>
  5. 5. What is a Lean Process ? Define value from the customer’s perspective Map the value stream Create flow; eliminate the root causes of waste Create pull where flow is difficult to achieve Seek perfection via continuous improvement
  6. 6. VSM – Why, What, Where? <ul><li>Key tool for Lean implementation, makes process & problems visible </li></ul><ul><li>Forms the basis of an improvement plan and a common language </li></ul><ul><li>Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC) </li></ul><ul><li>Is a qualitative tool for identifying and eliminating waste (or muda) </li></ul><ul><li>Aligns organisations processes, creates a sense of teamwork / ownership </li></ul><ul><li>Involves drawing - current state, future state, & an implementation plan </li></ul><ul><li>Spans the entire value chain, from raw materials receipts to finished goods delivery </li></ul><ul><li>A paper and pencil tool to help you visualise and understand the linkage between material and information flow </li></ul><ul><li>Focuses on maximising the overall flow </li></ul>
  7. 7. Value Add & Non Value Add <ul><li>Value Add (VA) </li></ul><ul><li>Any activity the customer values (and is willing to pay for) </li></ul><ul><ul><li>Who are your customers? </li></ul></ul><ul><ul><li>What do they really want? </li></ul></ul><ul><li>To be considered “value add”, a process step must have YES to all these questions </li></ul><ul><ul><li>Does the customer care? </li></ul></ul><ul><ul><li>Does it change the thing? </li></ul></ul><ul><ul><li>Is it done right the first time? </li></ul></ul><ul><ul><li>Is it required by law or regulation? </li></ul></ul><ul><li>Non Value Add (NVA) </li></ul><ul><li>Any activity that consumes time and / or resources & does not add value to the service or product for the customer. These activities should be eliminated, simplified, reduced, or integrated. </li></ul><ul><ul><li>Necessary – Legal / regulatory requirements </li></ul></ul><ul><ul><li>Unnecessary - Waiting, Unnecessary processing, Errors/defects, Motion (people), Transportation (product), Underutilised people, Inventory </li></ul></ul>
  8. 8. VSM - Principles <ul><li>Diagnostic Tool </li></ul><ul><ul><li>Reveals hidden symptoms of larger problems </li></ul></ul><ul><li>Strategic Planning Activity </li></ul><ul><ul><li>Helps prioritise opportunities for improvement </li></ul></ul><ul><ul><li>Results in an implementation plan </li></ul></ul><ul><li>Macro-Level - Visual Representation </li></ul><ul><ul><li>Information flow </li></ul></ul><ul><ul><li>People and material flow </li></ul></ul><ul><ul><li>Each process block represents a handoff or a break in the timeline </li></ul></ul><ul><li>Contains Relevant Metrics </li></ul><ul><ul><li>Lead time – throughput / turnaround / flow time </li></ul></ul><ul><ul><li>Cycle time – touch / process time </li></ul></ul>
  9. 9. SIPOC - Process Map S I O C P S uppliers I nputs P rocess O utputs C ustomers
  10. 10. Definition <ul><li>Cycle Time (C/T) – time to complete a single unit of production </li></ul><ul><li>First Time Through (FTT) - % of jobs that are complete and accurate the first time that they are processed. </li></ul><ul><li>Demand – average number of units per shift </li></ul><ul><li>Batch Size (BS) – size of typical batch that is processed as a unit </li></ul><ul><li>Takt time – rate of demand </li></ul><ul><li>Throughput time – sum of delays and process time </li></ul><ul><li>Process Ratio = Total process time / Throughput time </li></ul><ul><li>Value Added Ratio = Total VAT / Throughput time </li></ul>
  11. 11. Highlights - 2 <ul><li>Current Process Challenges </li></ul><ul><li>Conceptual Overview </li></ul><ul><li>VSM Charter </li></ul><ul><li>VSM Boundary </li></ul><ul><li>Product Family Matrix </li></ul><ul><li>Data Collection </li></ul><ul><li>Future State – Questions & Blueprint </li></ul>
  12. 12. Current Process Challenges <ul><li>Lots of waiting </li></ul><ul><li>Lots of travel </li></ul><ul><li>Lack of communication </li></ul><ul><li>Lack of skills / not trained </li></ul><ul><li>Too many handoffs </li></ul><ul><li>Too many approvals </li></ul><ul><li>Too many workarounds </li></ul><ul><li>Duplication of work </li></ul><ul><li>Dead zones - places where work gets held up or lost </li></ul><ul><li>Lost time - people looking for work and / or re-work loops to correct errors </li></ul><ul><li>Broken interfaces - ineffective or non-existent interfaces </li></ul><ul><li>Different prioritisation rules in different departments </li></ul><ul><li>High Lead Time (slow throughput/turnaround) </li></ul><ul><li>High WIP (waste in process – bottlenecks / backlogs) </li></ul><ul><li>Low CT/LT ratio (lots of waiting) </li></ul>
  13. 13. Conceptual Overview - Where to start? <ul><li>VSM Charter & Scope </li></ul><ul><ul><li>Process Boundaries / Scope </li></ul></ul><ul><ul><li>Roles & Responsibilities </li></ul></ul><ul><ul><li>SIPOC </li></ul></ul><ul><li>Product Family </li></ul><ul><ul><li>Start with a single product family </li></ul></ul><ul><li>Current & Future State </li></ul><ul><ul><li>Collect data on process & system </li></ul></ul><ul><ul><li>Be specific </li></ul></ul><ul><ul><ul><li>how many finished part numbers in family? </li></ul></ul></ul><ul><ul><ul><li>how much is demanded? </li></ul></ul></ul><ul><ul><ul><li>how often? </li></ul></ul></ul><ul><ul><li>Verify & repeat the Process </li></ul></ul><ul><li>Develop Implementation Plan </li></ul>Current state drawing Future state drawing Work plan & implementation Charter / Scope Product family
  14. 14. VSM Charter <ul><li>Vision </li></ul><ul><li>Mission </li></ul><ul><li>Improvement Objectives </li></ul><ul><li>Strategic Plan </li></ul><ul><li>Critical Success Factors </li></ul><ul><li>Drivers </li></ul><ul><li>Process Description </li></ul><ul><li>Management Information System </li></ul><ul><li>Start / End Date </li></ul><ul><li>High Level Scope </li></ul><ul><li>Benefits Realisation </li></ul><ul><li>Process Champion </li></ul><ul><li>Team Leaders </li></ul><ul><li>Team Members </li></ul><ul><li>Facilitators </li></ul><ul><li>Risk & Tolerance </li></ul><ul><li>Drivers </li></ul><ul><li>Roles & Responsibilities </li></ul>
  15. 15. VSM - Boundary <ul><li>Current State </li></ul><ul><li>Define the boundaries </li></ul><ul><li>Define the value </li></ul><ul><li>Identify the tasks and flows of material and information between them </li></ul><ul><li>Identify resources for each task and flow </li></ul><ul><li>Create the current state map </li></ul><ul><li>Future State (Design) </li></ul><ul><li>Visualise the “Ideal State” and design the future state map </li></ul><ul><ul><li>Identify value added and waste from Current State </li></ul></ul><ul><ul><li>Reconfigure the process to eliminate waste / Add Value </li></ul></ul><ul><li>Implementation Plan </li></ul><ul><li>Develop Action plans and track </li></ul>
  16. 16. Define Boundary <ul><li>Before launching on VSM, define the Start and End points </li></ul><ul><ul><li>Prepare As-Is physical map – How / where (inputs to outputs) </li></ul></ul><ul><ul><li>Prepare As-Is geographical map - area(s) where process is performed </li></ul></ul><ul><ul><li>Add process control information flow to as-is physical map </li></ul></ul><ul><li>A logical starting point - where Inputs cannot be returned to the preceding step. </li></ul><ul><li>Capture the process as it is actually performed and include workarounds, rework, informal activities, feedback loops etc </li></ul><ul><li>In lean, we commonly define “work-in-process” is anything you can’t ship to the customer or return to the supplier </li></ul><ul><li>Add As-Is process metrics - counts, rates </li></ul><ul><ul><li>The number of parts required by customers </li></ul></ul><ul><ul><li>The number of machines and operators available to work on parts </li></ul></ul><ul><ul><li>The rates that process steps work on parts </li></ul></ul>
  17. 17. Eg. Boundary - Start & End Points <ul><li>Inputs </li></ul><ul><li>Market Research </li></ul><ul><li>Data - Competition </li></ul><ul><li>Firm’s Strategy </li></ul>Define Go-to Market Drivers Review Objectives, Goals & Strategies Identify Risks, Assumption & Constraints Conduct “What If” Scenarios START Evaluate Scenarios Approve Go-to Market Plan <ul><li>Outputs </li></ul><ul><li>Marketing Plan </li></ul><ul><li>KPI </li></ul><ul><li>Team </li></ul>END
  18. 18. Material & Information Flow <ul><li>Use the “Scope” document to map the product or service flow </li></ul><ul><li>Map the whole value stream by conducting a “walk through” of the actual process and collect information </li></ul><ul><ul><li>Start with the final step and walk backwards (customer perspective) </li></ul></ul><ul><ul><li>Outline major process blocks </li></ul></ul><ul><ul><li>Chunk of activities that occur before a handoff </li></ul></ul><ul><li>Stay focused on the norm </li></ul><ul><ul><li>Use the “70% rule” to avoid getting bogged down with exceptions </li></ul></ul><ul><li>Interview workers to obtain data </li></ul><ul><ul><li>Cycle time (CT) </li></ul></ul><ul><ul><li>Lead time (LT) </li></ul></ul><ul><li>Bring your stopwatch and do not rely on information that you do not personally see </li></ul><ul><li>Draw by hand and use a pencil </li></ul>
  19. 19. Resource Identification <ul><li>VSM are strategic in nature </li></ul><ul><ul><li>The resulting implementation plan is the tactical component </li></ul></ul><ul><li>Nominate a VSM Head, who has </li></ul><ul><ul><li>Top Management support </li></ul></ul><ul><ul><li>Power to influence changes </li></ul></ul><ul><li>Team composition </li></ul><ul><ul><li>Team / Process Leaders </li></ul></ul><ul><ul><li>Team Members who have process knowledge </li></ul></ul><ul><ul><li>Facilitators / Management Consultants </li></ul></ul>
  20. 20. Product Family Matrix X X X X X U X X X X X X XX X X X X X EL X X X X X L X X X X X X M X X X X X X S X X X X X X ES P R O D U C T S 8 7 6 5 4 3 2 1 Routing - Process / Operations #
  21. 21. Data Collection <ul><li>Pack sizes at each process </li></ul><ul><li>Working hours and breaks </li></ul><ul><li>Inventory Points (location & size) </li></ul><ul><li>How Operations are scheduled </li></ul><ul><li>Overtime per week </li></ul><ul><li>Process cycle times </li></ul><ul><li>Scrap </li></ul><ul><li>Rework </li></ul><ul><li>Downtime </li></ul><ul><li>Demand rates by process (Takt Time) </li></ul><ul><li>Number of product variations at each step </li></ul><ul><li>Shipping/Receiving schedules </li></ul><ul><li>Activity </li></ul><ul><li>Department performing </li></ul><ul><li>IT systems used </li></ul><ul><li>Current backlog/WIP </li></ul><ul><li>Demand rate </li></ul><ul><li>Work Time </li></ul><ul><li>Number of people / operators </li></ul><ul><li>Prioritisation rules </li></ul><ul><li>% Quality (first pass Yield) </li></ul><ul><li>Batch size </li></ul><ul><li>Run frequency </li></ul><ul><li>Equipment availability </li></ul><ul><li>C/T - Cycle (touch) time (observed & effective) </li></ul><ul><li>C/O - Changeover time & frequency </li></ul>
  22. 22. Future State Questions <ul><li>What should be the Takt time (available time / customer demand)? </li></ul><ul><li>What does the customer really need? </li></ul><ul><li>How often will we check our performance to customer needs? </li></ul><ul><li>How can we improve the flow, with fewer interruptions? </li></ul><ul><li>How do we control work between interruptions? How will work be prioritised? </li></ul><ul><li>Is there an opportunity to balance the work load and/or different activities? </li></ul><ul><li>Where can continuous flow be put in place? </li></ul><ul><li>Where should pull systems be implemented? </li></ul><ul><li>Where, when and how will scheduling be done? </li></ul><ul><li>How do we perform load leveling and what will be the product mix? </li></ul><ul><li>What should the management time frame be? </li></ul><ul><li>What process improvements are necessary, to achieve the future state? </li></ul><ul><li>What will the future state metrics be? </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><ul><li>Errors </li></ul></ul></ul><ul><ul><li>Delivery </li></ul></ul><ul><ul><ul><li>Lead time </li></ul></ul></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><ul><li>How well do you provide services (internal and external) </li></ul></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><ul><li>Reducing errors, rework, handoffs, waiting and lead time </li></ul></ul></ul>
  23. 23. Design Future State – Blueprint <ul><li>Define how the plant will operate in the future (blueprint) </li></ul><ul><li>Consider whether (remove waste / non value add activities) </li></ul><ul><ul><li>everything done currently at each stage is really necessary </li></ul></ul><ul><ul><li>the impact if superfluous tasks was to be removed </li></ul></ul><ul><ul><li>the process can be rearranged in a more efficient sequence </li></ul></ul><ul><ul><li>a different flow layout or transport routing can be introduced </li></ul></ul><ul><li>Validate Customer Demand </li></ul><ul><li>Draw the Future State Process Flow </li></ul><ul><li>Map the Future State Material & Information Flow </li></ul><ul><li>Calculate Total Product Cycle Time </li></ul><ul><li>Detail Off-Line Activities </li></ul><ul><li>Outline an Implementation Plan </li></ul>
  24. 24. Highlights - 3 <ul><li>Current State (As~Is) </li></ul><ul><ul><li>Step 1 - Define Customer’s Demand </li></ul></ul><ul><ul><li>Step 2 - Map Basic Production Processes </li></ul></ul><ul><ul><li>Step 3 - Define Data To Be Collected </li></ul></ul><ul><ul><li>Step 4 - Collect & Map Data </li></ul></ul><ul><ul><li>Step 5 - Map Information Flow </li></ul></ul><ul><ul><li>Step 6 - Calculate Current State </li></ul></ul><ul><ul><li>Step 7 - Compute Takt time </li></ul></ul><ul><ul><li>Step 8 - Line Balancing </li></ul></ul>
  25. 25. Define Customer’s Demand <ul><li>Demand = 3,200 pieces / week </li></ul><ul><ul><li>Type L = 1,000 piece week </li></ul></ul><ul><ul><li>Type S = 2,200 piece week </li></ul></ul><ul><li>Plant Operates 1 shift / day </li></ul><ul><li>Packaging = 60 pieces / Tray </li></ul><ul><li>Customer Shipment = 1 / day (Truck) </li></ul><ul><li>Supplier Shipment = 1 / week (Truck) </li></ul>
  26. 26. Map Basic Production Process <ul><li>Ensure </li></ul><ul><ul><li>Mapping begins with customer’s demand </li></ul></ul><ul><ul><li>Conduct a walk through and obtain high level process information </li></ul></ul><ul><ul><li>Start from the shipping (Staging Process) and work up-stream to the receiving dock </li></ul></ul><ul><ul><li>The team involved should map the entire process stream from start to end </li></ul></ul>
  27. 27. Map Process (Contd.) – Mapping Icons © 2007 Pearson Education
  28. 28. Define Data To Be Collected <ul><li>Cycle Time (C/T) </li></ul><ul><li>Changeover Time (C/O) </li></ul><ul><li>Uptime </li></ul><ul><li>Number of Operations </li></ul><ul><li>Break Time </li></ul><ul><li>Work Time (minus breaks) </li></ul>
  29. 29. Define Data (Contd.) - Work Time Calculation <ul><li>Day = 1 shift </li></ul><ul><ul><li>1 Shift / day = 8 hours = 28,800 seconds / shift ( 8 x 60 x 60 x 1 shift) </li></ul></ul><ul><li>Breaks </li></ul><ul><ul><li>Morning Tea (15 mins) : Lunch (30mins) : Afternoon Tea (15 mins) </li></ul></ul><ul><ul><li>Breaks = 60 mins = 3,600 seconds { (15 + 30 + 15) x 60} </li></ul></ul><ul><li>Working Time / Operating Time </li></ul><ul><ul><li>Shift Time – Break = 25,200 working seconds / shift (28,800 – 3,600) </li></ul></ul>
  30. 30. Collect & Map Data (Customer & Supplier)
  31. 31. Map Information Flow
  32. 32. Calculate Current State <ul><li>1 week = 5 working days </li></ul><ul><li>Demand = 3,200 pieces / week or </li></ul><ul><li> 640 pieces / day </li></ul>Press Process Type L + S = 2,250 pieces (1,000 + 1,250) Duration = 3.5 days (2,250/640)
  33. 33. Result - Current State © 2007 Pearson Education A Representative Current State Map for a Family of Retainers at a Bearings Manufacturing Company
  34. 34. Compute Takt Time <ul><li>1 week = 5 working days </li></ul><ul><li>Demand = 3,200 pieces / week </li></ul><ul><ul><li>Type L = 1,000 piece week (200/day) </li></ul></ul><ul><ul><li>Type S = 2,200 piece week (440/day) </li></ul></ul><ul><li>Total Pieces / Day / Shift = 640 </li></ul><ul><li>Operating Time / Working Time = 25,200 </li></ul><ul><li>Takt Time = Operating Time / Shift </li></ul><ul><li>Customer Requirment / Shift </li></ul><ul><li>Takt Time = 25,200 = 39 seconds </li></ul><ul><li>640 </li></ul>
  35. 35. Total - Processing / Work Time 60 Seconds
  36. 36. Line Balancing Work or Process Time = 60 Sec Takt Time = 39 Sec Work / Takt time = # of Operators Required = 60/39 = 1.54
  37. 37. Line Balancing (Contd.) <ul><li>You require 1.54 operators </li></ul><ul><li>Having 2 is costly and having 1 can lead to burnout </li></ul><ul><li>We could reduce Takt time from 39 sec to say 35 sec or less, by combining some tasks and avoiding burnout </li></ul>
  38. 38. Line Balancing (Contd.)
  39. 39. Highlights - 4 <ul><li>Future State (To~Be) </li></ul><ul><li>Implementation Road Map </li></ul><ul><li>Improvement Results </li></ul>
  40. 40. Future State (To~Be) <ul><li>Objectives </li></ul><ul><ul><li>Eliminate / reduce unnecessary NVA steps </li></ul></ul><ul><ul><li>Optimise VA steps </li></ul></ul><ul><li>Build Consideration (from current state) </li></ul><ul><ul><li>Eliminate/merge steps </li></ul></ul><ul><ul><li>Create parallel paths </li></ul></ul><ul><ul><li>Implement pull, if continuous flow isn’t possible </li></ul></ul><ul><ul><li>Reduce or eliminate batches </li></ul></ul><ul><ul><li>Create standard work </li></ul></ul><ul><ul><li>Create an organised, visual workplace </li></ul></ul><ul><ul><li>Eliminate unnecessary approvals </li></ul></ul><ul><ul><li>Identify NVA tasks from customer’s point of view </li></ul></ul><ul><ul><li>Level production mix </li></ul></ul>
  41. 41. Implementation Road Map <ul><li>Clarify Business Drivers and Key Customer Metrics </li></ul><ul><li>Assess and Map Current Capabilities (Baseline) </li></ul><ul><li>Identify Opportunities for improvement including the elimination of waste </li></ul><ul><li>Create a Vision for the Future Based on Voice of the Customer and Voice of the Business </li></ul><ul><li>Analyse Gaps and Create Action Plan to Succeed </li></ul><ul><ul><li>Use Robust Set of Tools (i.e. Lean Six Sigma) </li></ul></ul><ul><li>Determine Priorities and Resources Necessary </li></ul><ul><ul><li>Structured Process Improvement </li></ul></ul><ul><li>Track Impact through Metrics </li></ul><ul><li>Celebrate Wins - With Customers : Employees : Suppliers </li></ul>
  42. 42. Improvement Results Morale # steps CT/LT ratio Cycle time Lead time % Improvement Future State Current State Metric
  43. 43. Highlights - 5 <ul><li>Excellence Road Map </li></ul>
  44. 44. Excellence Road Map Approach / Develop Plan Deployment / Execute Plan Results 1 Assess & understand Set direction Develop key plans 2 3 Communicate & integrate plans 4 Develop cross - functional strategy teams 5 Develop / Integrate detailed implementation plans 6 Execute implementation plans 7 Quarterly , integrated operations leadership review 8 Strategic Planning Process 1 Define the process Establish metrics Determine performance 2 3 Analyse process stability 4 Set goals 5 Analyse & plan improvements 6 Implement improvement 7 Process Based Management Update Future State Set initiative priorities Initiative # 1 Initiative # 2 Initiative # 3 Initiative # 4
  45. 45. <ul><li>Good Luck </li></ul><ul><li> </li></ul>